IBC helps homebuyers move out of limbo as developers revive projects
Headline by Prism · from 1 report
The Insolvency and Bankruptcy Code has facilitated the completion of stalled real estate projects for over 140,000 homebuyers in India.
The Hindu BusinessLineThe brief
Written by software from the 1 report below.
- India's insolvency framework has enabled stronger developers to acquire and complete distressed real estate projects.
- More than 140,000 homebuyers have received or are nearing possession of homes that were previously stuck.
- Real estate now accounts for 22 percent of all corporate insolvency admissions.
- The government is exploring reforms to further prioritize project completion over liquidation to address lingering legal and financial delays.
What to watch next
- Potential implementation of proposed insolvency reforms by the Insolvency and Bankruptcy Board of India.
- Ongoing resolution proceedings for 1.1 lakh homebuyers still awaiting outcomes.
- Impact of rising construction and labor costs on the viability of future insolvency resolution plans.
The points restate the reports; where one says why it matters, that is Prism's reading, not a reported fact.
Who said what
4 quotes · 1 outlet
Only words found exactly in the article are shown, attributed and linked to the line they came from.
Gulam Zia
International Partner
2 quotes · 1 outlet
“The growing pool of distressed real estate under the IBC is creating an opportunity for financially stronger developers to expand through acquisitions. Real estate accounts for 22 per cent of all CIRP admissions, making it the second-largest sector, while resolution plans have on average realised 94.7 per cent of the fair value assessed.”
In the article
…Markets, CBRE India. Industry observers say financially stronger developers are often better placed to inject fresh capital, restore lender confidence and complete projects that might otherwise face liquidation. “ The growing pool of distressed real estate under the IBC is creating an opportunity for financially stronger developers to expand through acquisitions. Real estate accounts for 22 per cent of all CIRP admissions, making it the second-largest sector, while resolution plans have on average realised 94.7 per cent of the fair value assessed. “We are seeing large developers such as Adani, Reliance, JSW, Prestige, etc., stepping in to acquire or resolve distressed real estate platforms and projects. This suggests that IBC is increasingly becoming an…
“We are seeing large developers such as Adani, Reliance, JSW, Prestige, etc., stepping in to acquire or resolve distressed real estate platforms and projects. This suggests that IBC is increasingly becoming an alternative route for established developers to access projects, land and development potential, while bringing in the capital and execution capability needed to revive them. The ultimate beneficiaries are the stuck home buyers who are at last getting possession of their dream homes,”
In the article
…expand through acquisitions. Real estate accounts for 22 per cent of all CIRP admissions, making it the second-largest sector, while resolution plans have on average realised 94.7 per cent of the fair value assessed. “ We are seeing large developers such as Adani, Reliance, JSW, Prestige, etc., stepping in to acquire or resolve distressed real estate platforms and projects. This suggests that IBC is increasingly becoming an alternative route for established developers to access projects, land and development potential, while bringing in the capital and execution capability needed to revive them. The ultimate beneficiaries are the stuck home buyers who are at last getting possession of their dream homes, ” said Gulam Zia, International Partner and Senior Executive Director at Knight Frank. One example is Take Ten BKC, a luxury residential redevelopment project in Mumbai’s Bandra-Kurla Complex that stalled in 2020…
Nikhil Bhatia
Managing Director – Land & Capital Markets, CBRE India
1 quote · 1 outlet
“Real estate resolutions under IBC are slower than most other sectors, and that’s structural. These are typically long-gestation projects with layered claims across homebuyers, lenders and land partners, and whoever steps in has to fund construction upfront while returns come later. It requires patient capital and a longer holding horizon than most balance sheets are set up for. Recently, the steady end-user demand and firmer pricing in the larger markets have made some stalled assets viable to complete again,”
In the article
…execution can also significantly affect project viability. Successful bidders may have to deliver homes at prices agreed five to 10 years earlier, even as construction, labour and financing costs have risen sharply. “ Real estate resolutions under IBC are slower than most other sectors, and that’s structural. These are typically long-gestation projects with layered claims across homebuyers, lenders and land partners, and whoever steps in has to fund construction upfront while returns come later. It requires patient capital and a longer holding horizon than most balance sheets are set up for. Recently, the steady end-user demand and firmer pricing in the larger markets have made some stalled assets viable to complete again, ” said Nikhil Bhatia, Managing Director – Land & Capital Markets, CBRE India. Industry observers say financially stronger developers are often better placed to inject fresh capital, restore lender confidence and…
Vishal Bhargava
real estate expert
1 quote · 1 outlet
“While no resolution plan is perfect, NCLT has restored confidence amongst buyers. With heavyweight developers like Adani and Lodha acquiring distressed projects, reviving them and delivering homes, the insolvency framework has often proved a more effective remedy than prolonged litigation.”
In the article
…more than 300 homebuyers after the default of its original developer, Ashiana Landcraft Realty Pvt Ltd. Calling NCLT a “boon for homebuyers trapped in stalled projects”, real estate expert Vishal Bhargava said, “ While no resolution plan is perfect, NCLT has restored confidence amongst buyers. With heavyweight developers like Adani and Lodha acquiring distressed projects, reviving them and delivering homes, the insolvency framework has often proved a more effective remedy than prolonged litigation. ” The IBC has also been used by major developers to expand their commercial property portfolios. Oberoi Realty, along with a consortium, took over Hotel Horizon in Mumbai, while Macrotech Developers used the insolvency…
Coverage
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All filed from India
NamedIndia · Ashiana Landcraft Realty Pvt Ltd · HDIL · Adani Realty · CBRE India · Gulam Zia · Insolvency and Bankruptcy Board of India · JSW · Knight Frank · Lodha · Macrotech Developers · Nikhil Bhatia · Oberoi Realty
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